Earlier this year Callahans surveyed all credit unions over $25 million to
better understand their IT spending priorities. The questionnaire asked for
spending intentions in six categories, including Internet applications. The
survey results indicate continued development of a number of online capabilities
that encompass both new and widespread technologies.
Named as a priority for the largest percentage of respondents, 69%, is investing
in online consumer loan decisioning software in order to speed the response
time to member loan inquiries. Not surprisingly given the growth of real estate
lending, 14% of responding credit unions are also investing in online mortgage
decisioning software in 2004.
A majority of respondents, 57%, indicated that they are undertaking a redesign
of their website as they look to enhance the member's online experience and
generate additional online transaction activity. The drive to build transaction
volume by providing members with comprehensive tools for managing their finances
is evident in spending on capabilities such as e-Alerts, education calculators,
account-to-account transfers, and bill pay.
The survey respondents include eighty-five credit unions with over $68 billion
in assets. The average size credit union was $800 million and the median was
$325 million in assets. While the data is not sufficiently representative to
draw industry-wide conclusions, we believe that the major expenditure priorities
and needs have been identified.
Learn more about credit union spending priorities in areas such as ATM's, branches,
call centers and core processing systems in Callahan's
2004 Technology Survey, the premier resource for information on technology
usage and partners among credit unions.